New car driver insurance premiums are typically better than the average price because the driver is at risk of having an accident. Inexperience and ignorance about the vehicle and the roads can make a driver more vulnerable to getting into a car accident, so most insurance companies will extend a higher premium until new drivers show themselves with consistent driving skills.
As of 2010, the national average for car insurance premiums for men and women between the ages of 18 and 25 years old – the majority of new drivers – is $11,566. Average insurance rates from August 2009 to July 2010 for teen drivers range between $2,141 to $2,741, which is somewhat higher than the national average
Reasons Why New Driver Car Insurance is High
New driver car insurance rates are far higher than the national average, because car insurance companies invest in a driver who is at high risk of being involved in a car accident. Here are some key reasons why new driver car insurance rates are so high:
– Teenage drivers are statistically more likely to be involved in both fatal and nonfatal crashes than other drivers.
– New drivers still have a proven board to build on.
– New drivers may be too inexperienced to handle high-risk driving situations and have a higher chance of being involved in a collision or serious accident.
Find a Lower New Driver Car Insurance Rate
Although new drivers will not be eligible for the cheapest insurance cards, they may be eligible for certain discounts that can lower their insurance premium. A new driver can reduce car insurance rates in the following ways:
– Show a good student. Student drivers who have a high GPA may be eligible for certain insurance discounts because they prove they are responsible.
– Apply for insurance as part of a multi-line insurance plan. Families who purchase a multi-line insurance policy may be able to get a lower cost insurance policy for new drivers.
– Show and maintain a good driving record. Even if a new driver hasn’t had the opportunity to build up a strong driving record, they can make sure they are involved in a DUI incident and stay out of trouble while staying safe on the road. Maintaining a good driving record over the long term can lower new driver insurance rates.
Typical rates for insurance for new drivers are much higher than the national average, but there are many things a new driver can do to lower their rates over time. Shopping around for the best new driver car insurance rate is the first step to guaranteeing the driver the best rate available.
Sources:
“Teen Insurance and New Driver Car Insurance” State Farm.
“Car Insurance for Teens and Young Drivers, “CarInsurance.com.
” Average Annual Insurance Premium Rates,” CarInsurance.com.
